A pie chart provides a visually striking way for a company to organize information about how its internal hierarchical structure operates and the responsibilities of its members. In this diagram, circles are used to represent the different levels of the chain of command.
The central circle symbolizes the company's highest authority, while the surrounding circles represent subordinates, thus providing a clear and concise view of the organizational hierarchy.
What is a circular organizational chart used for?
Unlike the traditional organizational structure—also known as a vertical, pyramid-shaped organizational chart—in which power flows from the top down based on participants’ positions, the Organigrama Circular takes a different approach.
In response to the demotivation that some traditional approaches have caused among workers over the years, many modern companies have adopted new forms of business management, including circular management.
This approach does not focus on job titles, but rather on services oriented toward the customer rather than the boss. Although employees may have different levels of responsibility or roles, they do not fit into a conventional chain of command.
Now, how do you create a circular organizational chart?
The process of creating a circular organizational chart involves a series of essential steps to ensure its effectiveness and relevance to the company. Here are the key steps to follow:
Definition
The process of determining the orientation of the circular organizational chart is a critical step in its development. The key question to answer is whether the main focus will be on the customer or the company's CEO.
This decision goes beyond a mere visual choice; it has profound implications for the company's philosophy and organizational structure.
Details
If the decision is made to center the organizational chart around the customer, this underscores the strategic importance of the customer in decision-making and in shaping services. This will reflect a firm commitment to customer satisfaction and an organization designed to respond efficiently to customer needs.
The concentric circles in the organizational chart will be arranged around the customer, highlighting the central role the customer plays in the company's success.
Select the Type
Since we are using a specific geometric shape—in this case, a circle—the next step is to select the type of organizational chart that best meets the company's needs.
To make this process easier, you can use software tools such as Excel or turn to specialized human resources solutions, such as Sesame.
Creating the Organizational Chart
With the direction established, detailed information about the services, and the choice of organizational chart type, we can proceed to create the circular organizational chart. It is crucial to consider all the points mentioned in this article to ensure the creation of a comprehensive, ideal organizational chart tailored to the company’s specific needs.
By following these steps, you will create a circular organizational chart that not only reflects the the company's internal structure in detail, but also contribute to more effective management and a clear understanding of organizational responsibilities.
Benefits
The circular organizational chart is not only a visual representation but also a tool that offers numerous key advantages, strengthening the company’s organizational structure. Here are some of the key benefits:
- Elimination of the Chain of Command and Hierarchical Levels
- Putting the Customer First
- Collective Responsibility Toward the Customer
- Flexibility in Adding Jobs
- Employee Motivation and Bridging Differences
Of course, the use of the circular organizational chart goes beyond mere visual representation; becomes a catalyst for a dynamic organizational culture, which is customer-focused and promotes collaboration and sustainable growth.
Key Elements of a Circular Organizational Structure
Each institution, in its own unique way, creates an organizational chart that reflects the nature of its objectives, the interpersonal relationships, and the hierarchies among its members:
Arrangement in Concentric Circles
In this structure, hierarchical levels are represented by concentric circles arranged from the inside out. This visual layout provides a clear and organized representation of the company's internal hierarchy.
The Central Circle as a Symbol of Authority
The level of authority is represented by a central circle, symbolizing the person with the highest authority within the company. This design highlights the key role this individual plays in decision-making and overall management.
Hierarchies Represented by Concentric Circles
Arranged around the central circle are concentric circles that represent the different levels of the organization. Each outer circle corresponds to a specific hierarchical level, providing a clear overview of the organizational structure.
Strategic Placement of Managers and Channels of Authority
Immediate supervisors are placed within these circles, and visual channels are established through lines that represent both authority and responsibility. This layout makes it easier to understand the connections and relationships within the chain of command.
Reduction in Vertical Subordination
The circular organizational chart is often used to mitigate the perception of subordination that characterizes traditional vertical charts. This approach aims to foster a more collaborative and less hierarchical environment within the organization.
Additional Tips
To further strengthen a circular organizational structure, it is advisable to foster an environment of continuous learning. Promoting a mindset of constant improvement among the organization’s members will contribute not only to adaptability in the face of change, but also to innovation and the development of skills that enhance efficiency at all levels.
By fostering an environment where training and learning are core values, we ensure that the circular structure evolves dynamically, enriching the organizational culture and ensuring long-term success.
Undoubtedly, adopting a circular organizational structure offers benefits such as flexibility, a customer-centric approach, and flatter hierarchies, and its success is enhanced by adaptability, transparent communication, and a continuous emphasis on organizational learning.
